CYL has reported an improved operational performance over the past nine months post the acquisition of the Plutonic Gold Mine. Total gold production has risen from ~87kozpa in the 1QFY24 to ~113kozpa in the 2QFY24 and 3QFY24 and we expect a similar rate to be delivered in the 4QFY24. Recent drilling at Trident has confirmed the potential of a lower capital development option. We incorporate the development of Trident into our base case, which should push group production to ~160kozpa by FY27. Delivering higher grades at Plutonic from remnant stoping and additional satellite deposits presents upside risk to our base case forecasts. We expect CYL to continue to re-rate as the performance at Plutonic continues to improve and reiterate our SPEC BUY rating and A$1.50 price target.
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